Jasch Gauging Technologies Ltd Management Discussions

(PURSUANT TO REGULATION 34(2) OF THE LISTING REGULATIONS)

DISCLAIMER / CAUTIONARY STATEMENT

Statement in this Report, which describe the companys plans, projections, estimates, expectations or predictions, are based on certain assumptions and expectations of future events which may or may not happen as expected. Therefore, actual results could differ materially from those expressed/ implied and the company cannot guarantee that these will be realized. Important factor that could make a difference to the companys operations includeraw material availability and prices, cyclical demand and pricing in the companys principal markets, change in the government regulations, tax regime, politico-economic conditions within India and the countries in which the company conducts business and other incidental factors.

INDUSTRY STRUCTURE AND DEVELOPMENT

Jasch Gauging Technologies Ltd manufactures Industrial Gauges & Equipments. Industrial Gauges & Equipments are used for online measurement of thickness, grammage, moisture & ash contents in paper making industry, on-line measurement of thickness & coating weight in plastics, steel, sheet rolling, galvanizing, aluminum foil & nonferrous metal rolling industry.

The Financial Year 2024-25 was marked by an uncertain and fragile global economic environment. Despite a struggling global economy, India maintained its position as one of the fastest-growing large economies in the world. The Indian economy demonstrated strong resilience against the uncertain global landscape. The Union Budget for FY 2024-25 highlighted key focus areas primarily economic reforms aimed at improving Indias manufacturing competitiveness, safeguarding supply chains and reducing systemic financial risks. Corporate & Infrastructure development continues to be a focus area for the Government of India, with multiple projects being executed under various initiatives. Structural reforms and measures taken improved the ease of doing business to some extent.

OPPORTUNITIES AND THREATS

The fortune of Industrial Gauges & Equipments is linked with the rise or fall in domestic and international economies and also on investment by user-industries in capital goods or in quality control equipment. It may get adversely affected whenever there is slowdown in domestic and international economies.

PRODUCT & PERFORMANCE

The Company has only manufactured Industrial Gauges & Equipments. For performance of the Company, kindly refer to Board Report.

OUTLOOK

The Company will focus on sustaining its growth momentum in the current year and will focus on maximizing the output from the unit. The Company also focuses on further increasing the standardization of components used in Industrial Gauges, which benefits the customer and the Company. The Company will also work on aligning operations to the digital platform to transform its operations into Smart Operations.

RISKS AND CONCERNS

Risk is an integral part of any business and the Company is no exception. A brief evaluation of business risk, as perceived by the management, is as under:

1 . Business Risk A . User Industry concentration

Industrial Gauges & Equipments are classified as capital goods. These are generally bought by paper, plastic, steel and galvanizing industry. Revenues and consequent profits from industrial gauges, depend on growth of these industries. In case of a downward trend in the economy, investment in capital goods is the last priority of an enterprise.

B. Commodity Risk

In Industrial Gauges & Equipments, any increase in price of electronics items and steel has very little effect on the cost of production of gauges. Thegauges being technology-based capital goods, the Company is able to pass on the entire burden to the buyers and there is no commodity risk whatsoever. There are no long-term contracts in this segment also.

C. Customer & Geographical concentration

Excessive exposure to a few large clients has the potential to adversely affect the sales and profitability in view of failure/shift of clients to othermanufactures. Fortunately, the companys customers are fairly spread out across the country and further efforts are underway to enlarge presence in global markets.

D. Technological Obsolescence

The Company has developed the in - house technology for the design and manufacture of Industrial Gauges system which is being further upgraded continuously. Hence, there is no threat of obsolescence in the near future.

E. Litigation risk

Inspite of best efforts to remain within the framework of law, your Company, its Directors, Promoters and Officers may get involved in legal and regulatory proceedings. Any adverse decision in such proceedings may have a material adverse effect on our business, financial condition, cash flows and results of operations.

F. Cybercrime Risk

The cyber threat landscape is vast and continuously evolving. Cybercriminals are discovering new approaches to take advantage of vulnerabilities as technology evolves. Inspite of using complex passwords and time-based OTPs, installing latest anti-virus/anti-malware/security patch, etc, the criminals may still be one step ahead.

2. Financial Risk

A. Currency Fluctuation Risk

The Industrial Gauges System has large export potential, which provides some cushion by way of natural hedge on foreign exchange transactions. The companys foreign currency transactions are on current account basis and there are no deferred liabilities in terms of foreign exchange except amount due in respect of raw material imported on deferred payment basis after 31^st March 2025 and to be paid later.

B. Interest and Leverage Risk

Increase in bank interest rate impacts the profitability of the company because this increase cannot always be passed on to customer. The management tries to contain interest cost by efficient management of inventory and working capital resources.

C. Force Majeure & Act of God

Unforeseen natural or man-made calamities may have a significant financial bearing on the operation of the Company.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY Internal Control Systems

In order to safeguard the assets and their usage, maintenance of proper accounting record and provision of reliable data for taking business decisions, the management has put in place various internal control system. Broadly, these systems are entity level controls, financial controls andoperational controls. The internal controls provided by this system are authority and organization matrix, standard operating procedures, risk management practices, compliance framework within the organization, ethics and fraud risk management, management information system, selfassessment of control point, business continuity and disaster recovery planning, budgeting system, etc.

Adequacy and Key elements of the Internal Control Systems

The Audit Committee of the company, all of whose members are Independent Directors, has reviewed the aforesaid internal control systems and found the same to be adequate and commensurate with the nature, size, complexity and the business processes followed by the Company.

The Company has appointed a firm of Chartered Accountants as internal auditors to ensure compliance and effectiveness of the internal control systems prevalent in the company. The Audit Committee reviews the Internal Audit Reports. Additionally, the Audit Committee approves all the audit plans and reports for any issues raised by the internal and statutory auditors. Regular reports on the business development, future plans and projections are given to the Board of Directors. Internal Audit Reports are regularly circulated for the perusal of the senior management for appropriate action as required.

Normal foreseeable risks of the Companys assets are adequately covered by comprehensive insurance and are supplement by periodic risk assessments, inspections and safety conducted by the Company.

DISCUSSION ON FINANCIAL AND OPERATIONAL PERFORMANCE: Please refer to first paragraph of Directors Report.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT & NUMBER OF PEOPLE EMPLOYED

The Company treats its human resources as one of its most important assets. The Company continuously invests in attraction, retention and development of talent on an ongoing basis. The welfare activities of the Company specifically dedicated to its employees, include free emergency medical care, subsidized group health insurance, subsidized canteen facilities and need-based soft loans. To enrich the skills of employees, the Company conducts focused training programs. The Company did not have any labor problem during the year under report. Relations with workerand staff were cordial. There were no material developments in human resources/industrial relations front. The number of persons on rolls of theCompany as on 31-03-2025 were 96.

FINANCIAL RATIOS

As required under Regulation 34(3) of Listing Regulations read with para B.1 of Schedule V thereof, changes in financial ratios in the financial year 2023-24, as compared with those of the immediatelypreceding financial year are given in Note 36(14) to Standalone Financial Statements and the same may kindly be read as a part of this Report.

By order of the Board of Directors For Jasch Gauging Technologies Limited

Place: Sonipat	Jai Kishan Garg
Date: 20th May 2025	Chairman